Bermuda Aims to Address Lack of Banking Services for Crypto Firms

Bermuda Aims to Address Lack of Banking Services for Crypto Firms

October 24, 2018

Growth in the cryptocurrency industry is not easy to come by. Especially when it comes to securing banking services, struggles remain in place. In Bermuda, a country openly attracting startups, similar issues persist. There is still a very long way to go to overcome most roadblocks in this department.

The Search for Banking Services Continues

Cryptocurrency service providers often suffer from one and the same problem. Finding a bank willing to offer its services is a very daunting task. Being active in the world of digital assets is both appealing and troublesome in this regard. It also appears these issues are rather universal. Bermuda, a nation priding itself on attracting technology startups, can’t offer any reprieve in this regard.

Solving this “banking services problem” is not straightforward. In fact, it has been problematic for so long, one almost gets used to it. Bermuda’s David Burt is not giving up in this regard. He wants to make things easier for digital asset firms to obtain banking services in the country. Several undisclosed steps have been taken to alleviate some of the concerns.

It is difficult to position Bermuda as a startup hub without access to such key services. Banks around the world have always been opposed to digital asset service providers. Slowly but surely, that situation is coming to change in favor of this nascent industry. Several European regions are looking to pave the way for broader access. A first-mover advantage can yield spectacular results in the long run.

What Does the Future Hold?

For Bermuda, the first order of business is to convince the domestic Banker’s Association. Those institutions want to manage their risk and protect clients from financial harm. As such, they will dismiss the digital asset industry and its need for banking services until further notice. A recently introduced license may be able to provide some relief over the coming months.

This new license can, in theory, make it easier for banks and blockchain firms to collaborate. The bill has been approved by the Bermuda Parliament earlier in 2018. Another positive development is how the country has officially “approved” its first initial coin offering. This further confirms there will be positive progress to be made in this part of the world.

For the cryptocurrency industry, any positive development will be welcome. It has become increasingly difficult for new companies to make a lasting impression. One company not struggling in this regard is Coinbase. the popular exchange became part of the UK’s Faster Payments scheme this year. Unfortunately, such stories are the exception, rather than the norm in this day and age.

What other services can Bermuda offer to attract more crypto and blockchain startups? Let us know in the comments below.

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